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Paula Roth

@pauroth.bsky.social

22 followers 25 following 1 posts

Researcher in Economics at the Swedish House of Finance, SSE, sites.google.com/site/pauroth

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Reposted by Paula Roth

Elin Molin @elinmolin.bsky.social · 24/11/2025

New VoxEU column from my job market paper, co-authored with @kmajlesi.bsky.social and @pauroth.bsky.social

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Reposted by Paula Roth

VoxEU @ CEPR @voxeu.org · 24/11/2025

Households can face serious financial consequences from a spouse's illness or death even in a comprehensive welfare state like Sweden. Renters and low-wealth households are hit the hardest. @kmajlesi.bsky.social @elinmolin.bsky.social @pauroth.bsky.social cepr.org/voxeu/column... #EconSky

This figure presents estimates of the effect of a fatal health shock on adult children, by the homeownership status and income loss of the surviving parent. Panels A–D correspond to children of renters or homeowners, further distinguished by whether the deceased parent was the primary earner (smaller income loss) or the secondary earner (larger income loss). Effects on debt collection, social benefits, and labour income are estimated with 95% confidence intervals using the Callaway–Sant’Anna (2021) difference-in-differences method, controlling for 10-year age bins of the children. The reported coefficients are expressed as percentage impacts relative to the mean outcome one year prior to the event. Standard errors are clustered at the parent level.

While many advanced economies shield their citizens from the most severe direct medical costs of illness, less is known about how households cope with income losses from a serious health event. This column shows that the financial consequences of a spouse’s illness or death can be severe, even in a comprehensive welfare state like Sweden. Defaults on unpaid debts, bills, and other financial commitments rise sharply after such shocks, with renters and low-wealth households hit the hardest. Both income and wealth access need to be considered to strengthen households’ financial resilience.

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Paula Roth @pauroth.bsky.social · 22/04/2025

Läs om vår rapport för Arena Idé på DN debatt idag:

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